Yesterday’s signals were not triggered, as the bullish price action took place a little way below the support level of 1.1577.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered before 5pm London time today, over the next 24-hour period only.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1648, 1.1709, or 1.1732.
Place the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1570 or 1.1496.
Place the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
EUR/USD Analysis
I wrote yesterday that the price was now in a bearish zone within a long-term bearish trend which is fully valid again. However, it may not be ready to resume its downward movement yet, as we see a possible first higher low at the support level of 1.1577. I was bearish below 1.1577. This turned out to be a good call as the area around 1.1577 marked the low of the day. The price has risen slowly since then but has not broken above the nearest resistance level at 1.1648 which looks as if it could be a strong level. The best potential opportunity which might arise today looks likely to be a short trade from a bearish reversal at 1.1648, while a sustained break above that level would be a bullish sign. I have no directional bias today as despite the long-term bearish trend, the Euro is showing some strength relative to other currencies, notably commodity currencies such as the Canadian and Australian Dollars.
Concerning the EUR, the President of the ECB will be speaking at a minor forum at 9am London time. Regarding the USD, there will be a release of Building Permits data at 1:30pm.